Cheniere Energy Sees Unusually Large Options Volume (NYSE:LNG)

Key Points

• Unusual options activity: investors bought 16,352 put options on LNG, a 266% increase versus the typical volume of 4,470 puts.
• Corporate actions: the board authorized a $10.0 billion share repurchase plan (up to 21.1% of outstanding shares) and the company pays a quarterly dividend of $0.555 (annualized $2.22, ~0.9% yield).
• Strong quarterly results and analyst backdrop: Cheniere reported EPS $10.68 vs. $3.90 expected with revenue up 22.9% YoY, and the consensus rating is a "Moderate Buy" with a $264.89 price target while the stock trades near $257.

Cheniere Energy, Inc. (NYSE:LNG - Get Free Report) saw some unusual options trading on Thursday. Stock investors acquired 16,352 put options on the stock. This represents an increase of 266% compared to the typical volume of 4,470 put options.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of LNG. Salomon & Ludwin LLC purchased a new stake in Cheniere Energy in the third quarter worth about $25,000. Caitong International Asset Management Co. Ltd acquired a new position in Cheniere Energy in the third quarter valued at approximately $27,000. Strive Financial Group LLC purchased a new stake in Cheniere Energy in the 4th quarter worth approximately $25,000. Kohmann Bosshard Financial Services LLC acquired a new position in shares of Cheniere Energy in the 4th quarter valued at $26,000. Finally, Hazlett Burt & Watson Inc. increased its holdings in Cheniere Energy by 250.0% in the third quarter. Hazlett Burt & Watson Inc. now owns 140 shares of the energy company's stock valued at $32,000 after buying an additional 100 shares in the last quarter. Institutional investors own 87.26% of the company's stock.

Analysts Set New Price Targets

LNG has been the topic of a number of analyst reports. UBS Group raised their price target on shares of Cheniere Energy from $277.00 to $301.00 and gave the company a "buy" rating in a report on Tuesday, March 3rd. Morgan Stanley set a $236.00 target price on Cheniere Energy and gave the company an "equal weight" rating in a research report on Tuesday, February 24th. Weiss Ratings downgraded Cheniere Energy from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, January 20th. Wells Fargo & Company cut their price target on shares of Cheniere Energy from $284.00 to $280.00 and set an "overweight" rating on the stock in a report on Monday, January 12th. Finally, Citigroup dropped their price objective on shares of Cheniere Energy from $283.00 to $280.00 and set a "buy" rating on the stock in a report on Monday, January 12th. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $264.89.

Cheniere Energy Stock Performance

LNG traded up $7.03 during trading hours on Thursday, hitting $257.35. The company's stock had a trading volume of 1,352,147 shares, compared to its average volume of 2,265,451. The company has a current ratio of 0.94, a quick ratio of 0.81 and a debt-to-equity ratio of 1.74. The firm has a market capitalization of $54.10 billion, a PE ratio of 10.60 and a beta of 0.25. The company has a 50-day simple moving average of $216.62 and a 200 day simple moving average of $217.23. Cheniere Energy has a fifty-two week low of $186.20 and a fifty-two week high of $259.24.

Cheniere Energy (NYSE:LNG - Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The energy company reported $10.68 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.90 by $6.78. Cheniere Energy had a net margin of 26.68% and a return on equity of 32.04%. The firm had revenue of $5.45 billion for the quarter, compared to analysts' expectations of $5.48 billion. During the same period last year, the firm earned $4.33 earnings per share. The business's revenue for the quarter was up 22.9% on a year-over-year basis. As a group, sell-side analysts expect that Cheniere Energy will post 11.69 EPS for the current year.

Cheniere Energy Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Friday, February 6th were paid a dividend of $0.555 per share. The ex-dividend date of this dividend was Friday, February 6th. This represents a $2.22 annualized dividend and a yield of 0.9%. Cheniere Energy's payout ratio is currently 9.14%.

Cheniere Energy declared that its board has initiated a share repurchase plan on Thursday, February 26th that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the energy company to buy up to 21.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Cheniere Energy Company Profile

Cheniere Energy, Inc is a U.S.-based energy company that develops, owns and operates liquefied natural gas (LNG) infrastructure and markets LNG to global customers. The company's core activities include natural gas liquefaction, long‑term and short‑term LNG sales and marketing, and the associated midstream services required to move gas from production basins to international markets. Cheniere focuses on converting domestic natural gas into LNG for export, providing a bridge between North American supply and overseas demand.

Cheniere's principal operating assets are large-scale LNG export terminals located on the U.S.

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